Shares of Ulta Salon are tumbling after the company issued a disappointing earnings forecast for the current quarter. The stock lost as much as 14 percent of its value this morning, falling to its lowest level in more than a year.

By now we're all accustomed to hearing about the "two-speed economy," in which the wealthy flourish and the less affluent fall farther and farther behind. The widening gap between rich and poor has not been lost on the stock market: The valuations of luxury goods companies are much higher than those of lower-end firms.

As commodity prices continue to rise, Estee Lauder is hiking prices for its cosmetics in China. The move comes after competitor L'Oreal already raised its prices. But the increases are unlikely to make much difference to Chinese consumers or to Estee Lauder's cash flow.

Revlon's stock has been choppy lately, swinging 10% to 20% in either direction on small news items. But the cosmetics and beauty care products company has gotten its feet back under itself financially, and in Trefis' view, it's undervalued by the market. Here's why:

The Estee Lauder Companies (EL) reported earnings of 95 cents per share for the quarter ended Sept. 30, compared with 71 cents per share a year earlier.
Sales rose 14% to $2.09 billion, the company said in a statement.

Fashion label Rodarte and M.A.C. Cosmetics are changing some of the product names of a cosmetics and clothing line inspired by violence-ridden border town Ciudad Juarez. The collection features off-white chiffon and lace garments and lipstick and nail polish in shades referred to as Factory, Juarez and Ghost Town.